India’s central bank held its key interest rate as Donald Trump’s planned increase to tariffs on the country’s exports to the US threatens to send its economy into turmoil.

The development comes days after Trump imposed 25 per cent tariff on Indian imports plus an unspecified penalty on India for Russian oil imports.

India, one of the largest suppliers of generic medicines to the U.S., is expected to be significantly impacted. According to the Times of India (TOI), India exports approximately USD 9 billion worth of generic drugs annually to the U.